Reductions in state funding, along with less-than-expected appraisal values, are expected to have Hays CISD officials seeing red for the second time in as many years.

Board trustees are looking at adopting a $3.4 million deficit budget when they vote on the Fiscal Year 2018 budget Aug. 31, said Ann Dixon, Hays CISD interim superintendent Monday.

Annette Folmar, Hays CISD chief financial officer, said part of the district’s deficit is a $1.5 million overrun that’s expected this fiscal...